diff --git a/api-docs/apiLive.htm b/api-docs/apiLive.htm
index 34b8af6db..eeb1df727 100644
--- a/api-docs/apiLive.htm
+++ b/api-docs/apiLive.htm
@@ -12704,6 +12704,52 @@ Request Body:
 	    </div>
 	</div>
 
+	<a id="savingsaccounts_close" name="savingsaccounts_close" class="old-syle-anchor">&nbsp;</a>
+	<div class="method-section">
+	    <div class="method-description">
+	        <h2>Close a savings account</h2>
+	        <p>Results in an Activated savings application being converted into an 'closed' savings account.</p>
+	    </div>
+	    <div class="method-example">
+	        <code class="method-declaration">POST https://Domain Name/api/v1/savingsaccounts/{savingsId}?command=close</code>
+	        <code class="method-request">POST savingsaccount/5?command=close
+Content-Type: application/json
+Request Body:
+	{
+	"dateFormat":"dd MMMM yyyy",
+	"locale":"en",
+	"closedOnDate":"26 August 2013",
+	"note":"close note"
+	}
+			</code>
+	        <code class="method-response">
+{
+"officeId":1,
+"clientId":1,
+"savingsId":5,
+"resourceId":5,
+"changes":{
+	"status":{
+		"id":600,
+		"code":"savingsAccountStatusType.closed",
+		"value":"Closed",
+		"submittedAndPendingApproval":false,
+		"approved":false,
+		"rejected":false,
+		"withdrawnByApplicant":false,
+		"active":false,
+		"closed":true
+		},
+	"locale":"en",
+	"dateFormat":"dd MMMM yyyy",
+	"closedOnDate":"26 August 2013",
+	"note":"close note"
+	}
+}
+	        </code>
+	    </div>
+	</div>
+
 	<a id="savingsaccounts_calculate_interest" name="savingsaccounts_calculate_interest" class="old-syle-anchor">&nbsp;</a>
 	<div class="method-section">
 	    <div class="method-description">
@@ -19323,6 +19369,14 @@ GET https://DomainName/api/v1/search?query=000000111
 					<td></td>
 					<td></td>
 				</tr>
+				<tr class="alt">
+					<td></td>
+					<td>savingsaccounts/{accountId}?command=close</td>
+					<td><a href="#savingsaccounts_close">Close a savings account</a></td>
+					<td></td>
+					<td></td>
+					<td></td>
+				</tr>
 				<tr>
 					<td></td>
 					<td>savingsaccounts/{accountId}?command=calculateInterest</td>
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/commands/domain/CommandWrapper.java b/mifosng-provider/src/main/java/org/mifosplatform/commands/domain/CommandWrapper.java
index 90ff1c732..4798d0f7e 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/commands/domain/CommandWrapper.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/commands/domain/CommandWrapper.java
@@ -457,6 +457,10 @@ public class CommandWrapper {
     public boolean isSavingsAccountDeposit() {
         return this.actionName.equalsIgnoreCase("DEPOSIT") && this.entityName.equalsIgnoreCase("SAVINGSACCOUNT");
     }
+    
+    public boolean isSavingsAccountClose() {
+        return this.actionName.equalsIgnoreCase("CLOSE") && this.entityName.equalsIgnoreCase("SAVINGSACCOUNT");
+    }
 
     public boolean isSavingsAccountWithdrawal() {
         return this.actionName.equalsIgnoreCase("WITHDRAWAL") && this.entityName.equalsIgnoreCase("SAVINGSACCOUNT");
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/commands/service/CommandWrapperBuilder.java b/mifosng-provider/src/main/java/org/mifosplatform/commands/service/CommandWrapperBuilder.java
index 49d7838ad..c3dd77033 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/commands/service/CommandWrapperBuilder.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/commands/service/CommandWrapperBuilder.java
@@ -816,6 +816,16 @@ public class CommandWrapperBuilder {
         this.href = "/savingsaccounts/" + accountId + "?command=activate";
         return this;
     }
+    
+    public CommandWrapperBuilder closeSavingsAccountApplication(final Long accountId) {
+        this.actionName = "CLOSE";
+        this.entityName = "SAVINGSACCOUNT";
+        this.entityId = accountId;
+        this.savingsId = accountId;
+        this.href = "/savingsaccounts/" + accountId + "?command=close";
+        return this;
+    }
+
 
     public CommandWrapperBuilder createAccountTransfer() {
         this.actionName = "CREATE";
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/commands/service/SynchronousCommandProcessingService.java b/mifosng-provider/src/main/java/org/mifosplatform/commands/service/SynchronousCommandProcessingService.java
index b8822b31c..dd4a87290 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/commands/service/SynchronousCommandProcessingService.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/commands/service/SynchronousCommandProcessingService.java
@@ -416,6 +416,8 @@ public class SynchronousCommandProcessingService implements CommandProcessingSer
                 handler = this.applicationContext.getBean("undoTransactionSavingsAccountCommandHandler", NewCommandSourceHandler.class);
             } else if (wrapper.isAdjustSavingsAccountTransaction()) {
                 handler = this.applicationContext.getBean("savingsTransactionAdjustmentCommandHandler", NewCommandSourceHandler.class);
+            } else if (wrapper.isSavingsAccountClose()) {
+                handler = this.applicationContext.getBean("closeSavingsAccountCommandHandler", NewCommandSourceHandler.class);
             } else {
                 throw new UnsupportedCommandException(wrapper.commandName());
             }
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/SavingsApiConstants.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/SavingsApiConstants.java
index a3f919e3e..b0452a62d 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/SavingsApiConstants.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/SavingsApiConstants.java
@@ -31,6 +31,7 @@ public class SavingsApiConstants {
     public static String undoTransactionAction = ".undotransaction";
     public static String applyAnnualFeeTransactionAction = ".applyannualfee";
     public static String adjustTransactionAction = ".adjusttransaction";
+    public static String closeAction = ".close";
 
     // command
     public static String COMMAND_UNDO_TRANSACTION = "undo";
@@ -91,6 +92,8 @@ public class SavingsApiConstants {
     public static final String runningBalanceParamName = "runningBalance";
     public static final String reversedParamName = "reversed";
     public static final String dateParamName = "date";
+    
+    public static final String noteParamName = "note";
 
     public static final Set<String> SAVINGS_PRODUCT_REQUEST_DATA_PARAMETERS = new HashSet<String>(Arrays.asList(localeParamName,
             monthDayFormatParamName, nameParamName, descriptionParamName, currencyCodeParamName, digitsAfterDecimalParamName,
@@ -150,4 +153,7 @@ public class SavingsApiConstants {
 
     public static final Set<String> SAVINGS_ACCOUNT_ACTIVATION_REQUEST_DATA_PARAMETERS = new HashSet<String>(Arrays.asList(localeParamName,
             dateFormatParamName, activatedOnDateParamName));
+    
+    public static final Set<String> SAVINGS_ACCOUNT_CLOSE_REQUEST_DATA_PARAMETERS = new HashSet<String>(Arrays.asList(localeParamName,
+            dateFormatParamName, closedOnDateParamName, noteParamName));
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/api/SavingsAccountsApiResource.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/api/SavingsAccountsApiResource.java
index 6a5239575..a1074510a 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/api/SavingsAccountsApiResource.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/api/SavingsAccountsApiResource.java
@@ -224,12 +224,15 @@ public class SavingsAccountsApiResource {
         } else if (is(commandParam, "applyAnnualFees")) {
             final CommandWrapper commandRequest = builder.savingsAccountApplyAnnualFees(accountId).build();
             result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
+        } else if (is(commandParam, "close")) {
+            final CommandWrapper commandRequest = builder.closeSavingsAccountApplication(accountId).build();
+            result = this.commandsSourceWritePlatformService.logCommandSource(commandRequest);
         }
 
         if (result == null) {
             //
             throw new UnrecognizedQueryParamException("command", commandParam, new Object[] { "reject", "withdrawnByApplicant", "approve",
-                    "undoapproval", "activate", "calculateInterest", "postInterest" });
+                    "undoapproval", "activate", "calculateInterest", "postInterest", "close" });
         }
 
         return this.toApiJsonSerializer.serialize(result);
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/data/SavingsAccountTransactionDataValidator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/data/SavingsAccountTransactionDataValidator.java
index 3ce43134a..4db68311d 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/data/SavingsAccountTransactionDataValidator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/data/SavingsAccountTransactionDataValidator.java
@@ -8,6 +8,7 @@ package org.mifosplatform.portfolio.savings.data;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.activatedOnDateParamName;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.bankNumberParamName;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.checkNumberParamName;
+import static org.mifosplatform.portfolio.savings.SavingsApiConstants.closedOnDateParamName;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.paymentTypeIdParamName;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.receiptNumberParamName;
 import static org.mifosplatform.portfolio.savings.SavingsApiConstants.routingCodeParamName;
@@ -105,6 +106,28 @@ public class SavingsAccountTransactionDataValidator {
 
         throwExceptionIfValidationWarningsExist(dataValidationErrors);
     }
+    
+    public void validateClosing(final JsonCommand command) {
+        final String json = command.json();
+
+        if (StringUtils.isBlank(json)) { throw new InvalidJsonException(); }
+
+        final Type typeOfMap = new TypeToken<Map<String, Object>>() {}.getType();
+        fromApiJsonHelper.checkForUnsupportedParameters(typeOfMap, json,
+                SavingsApiConstants.SAVINGS_ACCOUNT_CLOSE_REQUEST_DATA_PARAMETERS);
+
+        final List<ApiParameterError> dataValidationErrors = new ArrayList<ApiParameterError>();
+        final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors)
+                .resource(SavingsApiConstants.SAVINGS_ACCOUNT_RESOURCE_NAME);
+
+        final JsonElement element = command.parsedJson();
+
+        final LocalDate activationDate = fromApiJsonHelper.extractLocalDateNamed(closedOnDateParamName, element);
+        baseDataValidator.reset().parameter(closedOnDateParamName).value(activationDate).notNull();
+
+        throwExceptionIfValidationWarningsExist(dataValidationErrors);
+    }
+
 
     private void throwExceptionIfValidationWarningsExist(final List<ApiParameterError> dataValidationErrors) {
         if (!dataValidationErrors.isEmpty()) {
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
index 906e87f70..2537667d9 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
@@ -1658,6 +1658,63 @@ public class SavingsAccount extends AbstractPersistable<Long> {
         return actualChanges;
     }
 
+    public Map<String, Object> close(final AppUser currentUser, final JsonCommand command, final LocalDate tenantsTodayDate) {
+
+        final Map<String, Object> actualChanges = new LinkedHashMap<String, Object>();
+
+        final List<ApiParameterError> dataValidationErrors = new ArrayList<ApiParameterError>();
+        final DataValidatorBuilder baseDataValidator = new DataValidatorBuilder(dataValidationErrors)
+                .resource(SAVINGS_ACCOUNT_RESOURCE_NAME + SavingsApiConstants.closeAction);
+
+        final SavingsAccountStatusType currentStatus = SavingsAccountStatusType.fromInt(this.status);
+        if (!SavingsAccountStatusType.ACTIVE.hasStateOf(currentStatus)) {
+            baseDataValidator.reset().failWithCodeNoParameterAddedToErrorCode("not.in.active.state");
+            if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
+        }
+
+        final Locale locale = command.extractLocale();
+        final DateTimeFormatter fmt = DateTimeFormat.forPattern(command.dateFormat()).withLocale(locale);
+        final LocalDate closedDate = command.localDateValueOfParameterNamed(SavingsApiConstants.closedOnDateParamName);
+
+        if (closedDate.isBefore(getActivationLocalDate())) {
+            baseDataValidator.reset().parameter(SavingsApiConstants.closedOnDateParamName).value(closedDate)
+                    .failWithCode("must.be.after.activation.date");
+            if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
+        }
+        if (closedDate.isAfter(tenantsTodayDate)) {
+            baseDataValidator.reset().parameter(SavingsApiConstants.closedOnDateParamName).value(closedDate)
+                    .failWithCode("cannot.be.a.future.date");
+            if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
+        }
+        List<SavingsAccountTransaction> savingsAccountTransactions = retreiveListOfTransactions();
+        if (savingsAccountTransactions.size() > 0) {
+            SavingsAccountTransaction accountTransaction = savingsAccountTransactions.get(savingsAccountTransactions.size() - 1);
+            if (accountTransaction.isAfter(closedDate)) {
+                baseDataValidator.reset().parameter(SavingsApiConstants.closedOnDateParamName).value(closedDate)
+                        .failWithCode("must.be.after.last.transaction.date");
+                if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
+            }
+        }
+        if (getAccountBalance().doubleValue() > 0) {
+            baseDataValidator.reset().failWithCodeNoParameterAddedToErrorCode("results.in.balance.not.zero");
+            if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
+        }
+        this.status = SavingsAccountStatusType.CLOSED.getValue();
+        actualChanges.put(SavingsApiConstants.statusParamName, SavingsEnumerations.status(this.status));
+        actualChanges.put(SavingsApiConstants.localeParamName, command.locale());
+        actualChanges.put(SavingsApiConstants.dateFormatParamName, command.dateFormat());
+        actualChanges.put(SavingsApiConstants.closedOnDateParamName, closedDate.toString(fmt));
+
+        this.rejectedOnDate = null;
+        this.rejectedBy = null;
+        this.withdrawnOnDate = null;
+        this.withdrawnBy = null;
+        this.closedOnDate = closedDate.toDate();
+        this.closedBy = currentUser;
+
+        return actualChanges;
+    }
+
     private Date calculateDateAccountIsLockedUntil(final LocalDate activationLocalDate) {
 
         Date lockedInUntilLocalDate = null;
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/handler/CloseSavingsAccountCommandHandler.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/handler/CloseSavingsAccountCommandHandler.java
new file mode 100755
index 000000000..221782427
--- /dev/null
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/handler/CloseSavingsAccountCommandHandler.java
@@ -0,0 +1,27 @@
+package org.mifosplatform.portfolio.savings.handler;
+
+import org.mifosplatform.commands.handler.NewCommandSourceHandler;
+import org.mifosplatform.infrastructure.core.api.JsonCommand;
+import org.mifosplatform.infrastructure.core.data.CommandProcessingResult;
+import org.mifosplatform.portfolio.savings.service.SavingsAccountWritePlatformService;
+import org.springframework.beans.factory.annotation.Autowired;
+import org.springframework.stereotype.Service;
+import org.springframework.transaction.annotation.Transactional;
+
+@Service
+public class CloseSavingsAccountCommandHandler implements NewCommandSourceHandler{
+
+    private final SavingsAccountWritePlatformService writePlatformService;
+
+    @Autowired
+    public CloseSavingsAccountCommandHandler(final SavingsAccountWritePlatformService savingAccountWritePlatformService) {
+        this.writePlatformService = savingAccountWritePlatformService;
+    }
+
+    @Transactional
+    @Override
+    public CommandProcessingResult processCommand(final JsonCommand command) {
+        return this.writePlatformService.close(command.getSavingsId(), command);
+    }
+
+}
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformService.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformService.java
index 283c358ab..b649dd5b1 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformService.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformService.java
@@ -28,4 +28,6 @@ public interface SavingsAccountWritePlatformService {
     void postInterestForAccounts();
 
     CommandProcessingResult adjustSavingsTransaction(Long savingsId, Long transactionId, JsonCommand command);
+    
+    CommandProcessingResult close(Long savingsId, JsonCommand command);
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformServiceJpaRepositoryImpl.java
index 1bc9b4562..b355d18fa 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsAccountWritePlatformServiceJpaRepositoryImpl.java
@@ -14,6 +14,7 @@ import java.util.List;
 import java.util.Locale;
 import java.util.Map;
 
+import org.apache.commons.lang.StringUtils;
 import org.joda.time.LocalDate;
 import org.joda.time.format.DateTimeFormat;
 import org.joda.time.format.DateTimeFormatter;
@@ -32,6 +33,8 @@ import org.mifosplatform.portfolio.client.domain.Client;
 import org.mifosplatform.portfolio.client.exception.ClientNotActiveException;
 import org.mifosplatform.portfolio.group.domain.Group;
 import org.mifosplatform.portfolio.group.exception.GroupNotActiveException;
+import org.mifosplatform.portfolio.note.domain.Note;
+import org.mifosplatform.portfolio.note.domain.NoteRepository;
 import org.mifosplatform.portfolio.paymentdetail.domain.PaymentDetail;
 import org.mifosplatform.portfolio.paymentdetail.service.PaymentDetailWritePlatformService;
 import org.mifosplatform.portfolio.savings.SavingsApiConstants;
@@ -62,6 +65,7 @@ public class SavingsAccountWritePlatformServiceJpaRepositoryImpl implements Savi
     private final ApplicationCurrencyRepositoryWrapper applicationCurrencyRepositoryWrapper;
     private final JournalEntryWritePlatformService journalEntryWritePlatformService;
     private final SavingsAccountDomainService savingsAccountDomainService;
+    private final NoteRepository noteRepository;
 
     @Autowired
     public SavingsAccountWritePlatformServiceJpaRepositoryImpl(final PlatformSecurityContext context,
@@ -72,7 +76,7 @@ public class SavingsAccountWritePlatformServiceJpaRepositoryImpl implements Savi
             final PaymentDetailWritePlatformService paymentDetailWritePlatformService,
             final ApplicationCurrencyRepositoryWrapper applicationCurrencyRepositoryWrapper,
             final JournalEntryWritePlatformService journalEntryWritePlatformService,
-            final SavingsAccountDomainService savingsAccountDomainService) {
+            final SavingsAccountDomainService savingsAccountDomainService, final NoteRepository noteRepository) {
         this.context = context;
         this.savingAccountRepository = savingAccountRepository;
         this.savingsAccountTransactionRepository = savingsAccountTransactionRepository;
@@ -82,6 +86,7 @@ public class SavingsAccountWritePlatformServiceJpaRepositoryImpl implements Savi
         this.applicationCurrencyRepositoryWrapper = applicationCurrencyRepositoryWrapper;
         this.journalEntryWritePlatformService = journalEntryWritePlatformService;
         this.savingsAccountDomainService = savingsAccountDomainService;
+        this.noteRepository = noteRepository;
     }
 
     @Transactional
@@ -389,4 +394,37 @@ public class SavingsAccountWritePlatformServiceJpaRepositoryImpl implements Savi
             if (group.isNotActive()) { throw new GroupNotActiveException(group.getId()); }
         }
     }
+
+    @Override
+    public CommandProcessingResult close(Long savingsId, JsonCommand command) {
+        final AppUser user = this.context.authenticatedUser();
+
+        this.savingsAccountTransactionDataValidator.validateClosing(command);
+
+        final SavingsAccount account = this.savingAccountAssembler.assembleFrom(savingsId);
+        final List<Long> existingTransactionIds = new ArrayList<Long>();
+        final List<Long> existingReversedTransactionIds = new ArrayList<Long>();
+
+        final Map<String, Object> changes = account.close(user, command, DateUtils.getLocalDateOfTenant());
+        if (!changes.isEmpty()) {
+            this.savingAccountRepository.save(account);
+            final String noteText = command.stringValueOfParameterNamed("note");
+            if (StringUtils.isNotBlank(noteText)) {
+                final Note note = Note.savingNote(account, noteText);
+                changes.put("note", noteText);
+                this.noteRepository.save(note);
+            }
+
+        }
+        postJournalEntries(account, existingTransactionIds, existingReversedTransactionIds);
+
+        return new CommandProcessingResultBuilder() //
+                .withEntityId(savingsId) //
+                .withOfficeId(account.officeId()) //
+                .withClientId(account.clientId()) //
+                .withGroupId(account.groupId()) //
+                .withSavingsId(savingsId) //
+                .with(changes) //
+                .build();
+    }
 }
\ No newline at end of file